Xeros: Interim Results

Xeros Technology Group plc – Building momentum

Xeros Technology Group plc (AIM: XSG, “Xeros” or “the Group”) , the innovative developer of a patented polymer bead cleaning system with multiple identified commercial applications, today announces its unaudited interim results for the six months ended 31 January 2015.

Operational highlights

Commercial Laundry – Increasing customer traction:

• As at 31 January 2015: 41 installations with a further 61 committed to be installed
• 17 new machine installations in the period
• As at 24 April 2015: 54 installations with a further 69 committed to be installed
• 13 utility incentives programmes signed, more in progress
• 61 Forward Channel Partners sign at Clean Show 2015, significantly expanding the Group’s sales and service capabilities across North America
• Smaller machine development continues: launch 15 kg prototype before the end of 2015

Domestic Laundry

• Ongoing partner discussions with machine manufacturers and detergent companies

Beyond Laundry

• Leather processing – joint development programme with LANXESS announced today to develop leather bead processing technology
• Cash balance as at 31 January 2015 of £24.2m (31 July 2014: £29.5m)

Bill Westwater, CEO of Xeros Technology Group, said:

“The building blocks are in place for acceleration in our primary Commercial Laundry business. The combined impact of water scarcity and energy conservation, especially in our key US market, are now intense market trends. Our current enterprise customers are demonstrating that Xeros bead cleaning provides a robust and effective solution. This was clear from the excitement that we created at Clean Show 2015, with 61 channel partners signing up in four days to provide us with a scalable sales and service capability across North America.

“It is not only in Commercial Laundry where we have seen success. The joint development programme announced today with LANXESS provides an entirely incremental opportunity to develop and ultimately commercialise a Xeros bead solution in the $50 billion leather processing market. Just as we did in Commercial Laundry, our team is set to move from positive laboratory trials to a prototype in a tannery before the end of 2015.

“We continue to discuss partnership opportunities with major global players in Domestic Laundry. Our success in Commercial Laundry, especially as we move to smaller machines and end-user consumer trials, is creating greater interest from these global players.

“We’re hugely encouraged by the momentum building across the Group’s activities as we continue to deliver a superior performing Xeros bead solution for a world that can no longer depend on traditional aqueous processes.”